Tariff uncertainty threatens to raise drug prices and stall medical innovation, experts warn
Share this @internewscast.com

LOS ANGELES (KABC) — In this time of fluctuating tariff talks, many are concerned and confused about what it will cost us.

President Donald Trump put most of them on hold for now, but when it comes to paying for medications, tariffs could have some long-term consequences.

At various pharmacies, customer uncertainty is bringing worry especially for those already spending more than they can afford.

“One inhaler is $60 to $100 in order for me to get a breathing treatment,” said Lucky Goodrich of Los Angeles.

“Of course we get lots of calls, lots of inquiries and people want to know what’s going on,” said Sherri Cherman of Elements Pharmacy in Studio City.

Trump says he believes tariffs would drive drug makers to open manufacturing plants in the U.S., which would ultimately lower costs for Americans and create more jobs. Economists said the industry doesn’t work that way.

“It’s just completely different,” said Bill Padula, a scholar with the USC Schaeffer Center for Health Policy and Economics.

He said unlike other products, pharmaceutical prices are locked in with insurance companies at the start of every year.

“What pharmaceutical manufacturers may be in the position of is having to lower their price so that the price plus the tariff equals what health insurers will continue to expect as the cost of things,” he said.

The result is that drug companies will take the hit first.

But down the line, industry trade group Pharmaceutical Research and Manufacturers of America, estimated a proposed 25% tariff would boost drug prices by as much as 12.9%.

Experts say the raw ingredients for almost all medications are manufactured overseas, which means it could drive up cost even for drugs manufactured in the U.S.

“Even if there’s a 25% tariff on the drug itself being imported, the increased tariffs on active or raw ingredients that go into a drug could increase the total cost by 40%,” Padula said.

He added another potential consequence of drug makers making less profit means less money toward research and development for breakthrough treatments for cancer, Alzheimer’s and other diseases.

“So in the long run, Americans could pay by not having the availability of new innovative medications,” Padula said.

Is there a better solution? Padula said tax credits for drug makers have worked before. One example is the 1980s Orphan Drug Act which he said helped reduce costs and incentivize innovation.

“We saw instantaneous responses from the pharmaceutical industry trying to find ways to take existing drugs and create new indications for them,” he said.

But tax credit legislation on a federal level takes a very long time to pass, so Padula said local action would be faster.

“These credits could be deployed at the state level and incentivize manufacturers coming back to certain states,” Padula said.

At the cash register, Cherman said worry has prompted some customers to get as many prescriptions filled as possible, but she tells her customers change will be slow.

“I feel like there’s going to be a lot of negotiation between the drug industry and the government before we finally see what might happen,” she said.

Copyright © 2025 KABC Television, LLC. All rights reserved.

Share this @internewscast.com
You May Also Like
U.S. forces striking Iranian naval vessel

Iran Resolute in Pursuit of ‘Complete Victory’ Amid Significant Military Setbacks

An Iranian military official declared on Tuesday that Tehran’s forces remain committed…
Rubio cuts into Vance’s lead as 2028 GOP race tightens at CPAC

Marco Rubio Narrows Gap with J.D. Vance in Heated 2028 GOP Race at CPAC

Marco Rubio is swiftly closing in on JD Vance’s previously commanding lead…
It's Anything but 'Mostly Peaceful' in Portland As Mobs Attack Law Enforcement in 'No Kings' Assaults

Portland Faces Turmoil as Groups Clash with Police in ‘No Kings’ Protests

Nick Arama from RedState has been covering the strangely named “No Kings”…
Who actually runs Iran right now? The key power players as Trump claims talks to 'top' official

Who Holds the Reins in Iran? Key Power Players Amidst Trump’s Claims of Engaging with ‘Top’ Officials

“Nobody knows who to talk to,” President Donald Trump remarked at the…
Tensions flare outside Trump National Golf Club in Palos Verdes

Escalating Tensions: Unrest Erupts at Trump National Golf Club in Palos Verdes

On Saturday morning, a “No Kings” protest outside the Trump National Golf…
Violent teen ‘fight club’ on SoCal beach draws hundreds of bloodthirsty spectators

Shocking SoCal Beach ‘Fight Club’ Draws Hundreds: Inside the Disturbing Teen Brawl Phenomenon

One of San Diego’s most prestigious coastal areas is grappling with turmoil…
Violent 'No Kings' protesters descend on downtown Los Angeles

Protesters Rally in Downtown Los Angeles Against Monarchy Concepts

In a dramatic display of civil unrest, hundreds of demonstrators engaged in…
'We've got to stand up': No Kings protest marches through downtown Jacksonville

Empowering Voices: ‘No Kings’ Protesters Rally in Downtown Jacksonville for Change

Amid a sea of placards and resonating chants, demonstrators made their way…
Pentagon preparing for weeks of ground operations in Iran: report

Pentagon Strategizes Extended Ground Operations in Iran: Report Reveals Weeks-Long Military Preparation

According to a recent report, the Pentagon is gearing up for an…
Newly emerged video shows Noelia Castillo's father cheering her on as she tried to walk

Heartwarming Moment: Noelia Castillo’s Father Encourages Her First Steps in Viral Video

A heart-wrenching video has surfaced, capturing the poignant moment when Noelia Castillo,…
DHS shutdown: TSA agents will soon be paid but it may not mean immediate relief at airport security lines

Impending TSA Pay: Why Airport Security Delays Might Persist Despite DHS Shutdown Resolution

Amid the bustling spring break travel season, airline passengers continued to endure…
Russian drone strikes destroy Ukraine maternity hospital full of newborns: 'This was pure terror'

Russian Drone Attacks Devastate Ukrainian Maternity Hospital, Leaving Newborns in Peril: ‘A Scene of Pure Terror

In a devastating overnight assault, Russian drone attacks instilled “sheer terror” across…